Wednesday 19 May 2021

Sleepless Night in Crypto Coin Circle: 770,000 Investors in Liquidation

 How does the Bitcoin market go? At present, pessimism in the market has the upper hand. Ipek Ozkardeskaya, a senior analyst at Swissquote, said that as Bitcoin falls below the 200-day moving average, there will be more risks in the future.

The crypto coin circle had no sleep all night. According to the latest data of bybt, in the last 24 hours, a total of about 775,700 investors have become victims of liquidation in China. The largest single liquidation order occurred in Huobi-BTC, valued as high as US$67,001 million. On the evening of May 19, the ranking of the "coin circle collapse" jumped to the third place on the Weibo hot search list. Prior to this, the China Internet Finance Association and other three associations jointly issued an announcement to remind the risk of speculation in crypto coin transactions.

Prices Plummeting of Crypto Coins

On the morning of May 19, the price of Bitcoin dropped sharply. As of 11:07, the price of Bitcoin had fallen by 10.73%, which was only a gap of more than $200 from 40,000 USD per coin. You know, in April this year, the price of Bitcoin At one time, it exceeded 60,000 US dollars/piece; at the same time, the price of Ethereum also fell by 8.75%, and the price was close to 3,000 US dollars/piece. Just a week ago, its price once exceeded 4,000 US dollars/piece.

Crypto Coin Prices Plummet

However, this was just the beginning of the "nightmare". By noon on the 19th, the price of Bitcoin fell below $40,000 per coin. After 8:30 in the evening, the price of Bitcoin dropped in a free fall, with the lowest price in 24 hours. 31,100 US dollars per piece, which has been "cut in half" compared to the highest point this year. As of 23:18 on the 19th, the price of Bitcoin has rebounded to 36,900 US dollars per coin, down 15.33%.

Other crypto coins were not spared either. The price of Ethereum plummeted by 21.02% to US$2,657 per coin, and Binance Coin fell by 28% to US$367 per coin. The previous hot Dogecoin was not spared and fell. 23.79%.

The crypto coin price "avalanche" made the trading platform unsupportable. At 9 pm on May 19th, crypto coin trading platform Binance suspended the withdrawal of Ethereum and ERC20, and resumed about an hour and a half later. At the same time, Coinbase, one of the world's largest crypto coin trading platforms, was exposed to downtime and crypto coin trading Kraken also said there was a connection failure on the trading platform. At 10:45, Huobi's official website announced that the withdrawal of ERC20 tokens was suspended.

There is also a record high in the amount of platform liquidation. CryptoQuant data shows that the exchange liquidated 10,525 BTC in one hour on the evening of May 19, a record high.

Technology stocks have also been hit. The US stock market opened on the evening of May 19th, Beijing time, and the blockchain sector plummeted across the board. Among them, Marathon Patent fell 15%, Riot Blockchain fell 17%, Bit Mining fell 20%, Coinbase fell over 12%, a record low for listing, and Tesla Fell more than 5%.

Crypto Coins' Black Swans

"Institutional investors seem to be dumping bitcoin and turning to traditional gold because they see the end of the upward trend of bitcoin in the first two quarters, and therefore seek the stability of traditional gold." JPMorgan Chase said. Spot gold stood at US$1880 per ounce that day, the highest since January 8.

On May 18, the China Internet Finance Association and other three associations jointly issued the "Announcement on Preventing the Risk of Virtual Currency Trading Speculation" (hereinafter referred to as the "Announcement"). The "Announcement" bluntly stated that crypto coins have no real value support and prices are easily manipulated. Related speculative trading activities have multiple risks such as false asset risks, business failure risks, and investment speculation risks. At the same time, it is reminded that consumers should enhance their risk awareness, establish correct investment concepts, refrain from participating in crypto coin trading hype activities, and beware of personal property and rights damage.

However, the "Announcement" is by no means the only negative factor in the crypto coin circle recently." Last week, Tesla CEO Elon Musk's remarks have alarmed the coin circle.

On May 12th, local time, Musk said: "We believe that crypto coins have great potential in many aspects, but this does not come at the cost of environmental pollution. Tesla will not sell any bitcoins, but converts them into Tesla will restart Bitcoin transactions only after a more environmentally friendly approach. At the same time, we are also looking for other crypto coins that consume less than 1% of Bitcoin."

On May 16, local time, a netizen with an account named "Cryptowhale" stated on social media that "when Bitcoin investors notice that Tesla sells its Bitcoin holdings in the next quarter, the former will be extremely regretful" , Musk replied with the word "really". These news caused the price of Bitcoin to drop below $45,000 per coin for the first time in nearly three months.

How does the Bitcoin market go? At present, pessimism in the market has the upper hand. Ipek Ozkardeskaya, a senior analyst at Swissquote, said that as Bitcoin falls below the 200-day moving average, there will be more risks in the future. From a technical point of view, Bitcoin indicators are all red. The next level of support after falling below the $37,000 level is the $30,000 mark. At least in the short term, we are likely to see Bitcoin fall back to this level, or even fall below it.

Source: The Beijing News

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